John Holt Plc reported a steep second-quarter loss for the 2024/2025 financial year as dwindling revenue from its core leasing business and rising finance costs dragged the company into negative territory, deepening concerns over the sustainability of its operations.
This despite the firm posting a 140 percent growth in its after-tax profit in nine months of 2024 despite foreign exchange crisis that has continued to deplete business revenue.
According to its unaudited financials, the group recorded a loss after tax of N165 million for the six-month period ending March 31, 2025, compared to a N260 million profit recorded in the same period last year.
The decline came as revenue tumbled 77 percent year-on-year to N565 million, from N2.43 billion in Q2 2024.
The bulk of the revenue shortfall came from the company’s Technical Products and Leasing Services, which brought in just N355 million, down from N2.25 billion a year earlier. This signals a significant loss of business or contract pipeline in a segment historically responsible for over 90 percent of John Holt’s earnings.
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This subsidiary operates in Nigeria as a group of companies in charge of the assembly and distribution of power generators, leasing equipment, distribution of fire-fighting equipment, logistics, boat building and fabrication of industrial and agricultural equipment.
Operating performance worsens as costs persist
Despite a 79 percent drop in cost of sales, reflecting the slump in operations, gross profit fell 66 percent to N162 million, with margins squeezed by inflationary pressures and limited scale.
Operating loss stood at N69 million, reversing a N388 million profit in the same period last year. Administrative expenses rose slightly to N209 million, while distribution expenses held relatively flat.
Meanwhile, finance costs remained elevated at N94 million, further straining the bottom line. The company also booked a foreign exchange loss of N41 million in Q2 alone, suggesting exposure to naira depreciation amid a volatile macroeconomic backdrop.
“This performance reflects the current macroeconomic challenges, FX volatility, and the high cost of doing business,” said one analyst who tracks Nigeria’s mid-cap industrial stocks.
Liquidity boost masks deeper pressures
The company ended the period with N257 million in cash and cash equivalents, up from just N22 million in September 2024, a positive swing largely driven by increased payables rather than earnings growth. Net cash from operating activities stood at N408 million, compared to a negative N510 million in the prior year.
But the balance sheet still signals distress. Net current liabilities rose 24 percent to N1.21 billion, while trade and other payables jumped 25 percent to N2.29 billion, suggesting the company is leaning heavily on creditors to stay liquid. Inventories and receivables were largely flat.
Asset-rich, income-poor?
John Holt remains capital-rich on paper, with N4.35 billion in investment property and N2.67 billion in property, plant and equipment, figures that remain unchanged since the start of the financial year. However, these assets have failed to translate into meaningful income, with other operating income collapsing to N4 million from N505 million in the prior year.
This trend highlights a critical weakness: the company is asset-heavy but cash-light, and without new revenue drivers or asset monetisation, its financial stability is at risk.
Shareholder value deteriorates.
The company’s earnings per share (EPS) dropped to -42.4 kobo, from 66.9 kobo last year. Its revenue reserve shrank to N3.04 billion, a 5 percent decline from N3.21 billion in September 2024. No dividend was declared, and no other distribution to shareholders was made during the reporting period.
Despite the poor showing, John Holt’s free float remains at 46.84 percent, meeting the Nigerian Exchange’s minimum listing requirements. The bulk of its equity – 51.46 percent — is held by its foreign parent, John Holt & Company (Liverpool) Ltd.
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